Opened (IRA): SPY August 16th 493 Monied Covered Call... for a 485.25 debit.
Comments: (Late Post). Sold the -75 call against a one lot to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 485.25
Max Profit: 7.75 ($775)
ROC at Max: 1.60%
ROC at 50% Max: .80%
Will generally look to take profit at 50% max on the entire setup (stock + short call) as a unit, but won't hesitate to roll out the short call if in profit to keep my break even at or near where the underlying is currently trading or to maintain delta metrics.
This is kind of my new favorite setup in the IRA versus short put, particularly in underlyings where the put side is skewed closer to at-the-money than call and where there is heightened IV on the call side.
As previously noted, this only makes sense in a cash secured environment, since you get little buying power relief going with short put over this setup. On margin, the general answer pretty much always is "go with the short put" since that is more buying power efficient than being in stock or in covered call.